India: JSW Steel Q3 EBITDA surges 22% on the back of record sales

• Highest-ever consolidated steel sales: up 12% y-o-y
• Strategic 50:50 JV with JFE Steel announced for BPSL

JSW Steel on Tuesday reported a 22% year-on-year rise in consolidated adjusted consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for its third quarter ended 31 December, 2025, supported by higher steel volumes and lower coking coal and power costs, even as realisations remained under pressure.

Adjusted EBITDA stood at INR 7,849 crore for the third quarter of FY26, compared with INR 6,414 crore a year earlier. Operating performance improved on the back of better capacity utilisation and cost efficiencies, with adjusted EBITDA margin expanding to 17.4% from 13.1% last year, JSW said.

Revenue from operations increased 11% year-on-year to INR 45,991 crore, driven by stronger domestic demand and higher sales volumes, partially offset by softer pricing trends. Sales volumes rose 14% to 7.64 million tonnes, the highest ever for a third quarter, with domestic shipments contributing the bulk of growth while exports accounted for about 11% of volumes.

Crude steel production rose 6% year-on-year to 7.48 million tonnes, aided by the ramp-up of the 5 million tonnes per annum (mtpa) JVML-Vijayanagar facility. However, output fell sequentially due to the planned shutdown of Blast Furnace-3 at Vijayanagar for capacity expansion.

Sales momentum was led by value-added and special products (VASP), where volumes climbed 16% to a record 4.54 million tonnes, accounting for 61% of total sales. Growth was broad-based across automotive, renewables and branded products, while retail volumes rose 12% year-on-year, supported by the company’s expanding distribution network.

Strategic projects

JSW Steel said it has entered into a 50:50 joint venture with Japan’s JFE Steel Corporation for Bhushan Power & Steel Limited (BPSL), with the transaction expected to be completed by the third quarter of FY27. The deal involves transferring the business to a new entity, JSW Sambalpur, and is expected to enable deleveraging of approximately INR 37,000 crore for JSW Steel. Separately, the company announced the first phase of its integrated steel plant at Jagatsinghpur, Odisha, with a capacity of 5 million tonnes per annum (mtpa), which is expandable to 13.2 mtpa and targeted for commissioning by FY30.

The company also said the 5 mtpa JVML-Vijayanagar plant has successfully ramped up to its full capacity. In addition, JSW Steel increased its effective stake in the Illawarra coking coal mines to 30% following an additional 10% acquisition in October 2025, strengthening its raw material position.

Net debt to equity stood at 0.92 times at the end of the quarter, while net debt to EBITDA improved to 2.91 times. Net debt as of Dec. 31 stood at INR 80,347 crore.